Michael Saylor predicts that 2024’s Bitcoin halving will create a supply shock that will complement institutional investment in exchange-traded funds (ETFs). Cathie Wood is “as optimistic as ever,” while crypto hedge fund managers see sustained growth in 2024.
Saylor thinks the ETF approvals will create a “high bandwidth” channel for companies to invest in Bitcoin. This greater uptake will clash head-on with a reduction in the release rate of new Bitcoins in April, creating the perfect storm.
Short and Long-Term 2024 Crypto Predictions
Saylor didn’t commit to a price, unlike the founder of investment firm SkyBridge Capital, Anthony Scaramucci. Despite being stung by his investment in FTX, Scaramucci thinks ETF demand could push Bitcoin to $100,000 next year.
Despite a bruising crypto winter, crypto funds, including SkyBridge’s flagship vehicle, ended up gaining. The fund is up 25%, while some, like funds at Stoka Global LLP, saw astonishing gains of 268%. The CEO of Chainview Capital, another crypto hedge fund, Daniel Slavin, recently predicted a “token mania” in 2024.
The CEO of ARK Invest, Cathie Wood, did not commit to a price. ARK’s reshuffling of crypto exposure in its exchange-traded products gives a hint of the company’s outlook.
On Wednesday, Wood sold shares in Grayscale’s Bitcoin Trust, profiting from narrowing the gap between shares in GBTC and their underlying Bitcoin. At the same time, ARK bought around 4 million ProShares Bitcoin Strategy ETF shares.
While the sale of GBTC cashed in on shorter-term price action, the latter belied a longer-term confidence that Bitcoin will outperform crypto-related equities.
Read more: How To Prepare for a Bitcoin ETF: A Step-by-Step Approach
Altcoins Will be Driven by Bitcoin Rally
Regarding altcoins, the picture is one way clearer and not so much on the other. Big-cap altcoins like Ethereum and Solana are expected to perform well, with some caveats, while stablecoins may see greater volumes through maturing regulations.
Crypto futures ETF provider VanEck believes that Ethereum will outperform mega-cap tech stocks. Its rally will follow Bitcoin’s upward momentum as investors buy up the coin just after the halving.
The asset will start outperforming Bitcoin following the April event and for the year at large but will not “flip” Bitcoin.
Solana, on the other hand, will become the blockchain with the third-largest total value locked (TVL), continuing its 2022 momentum.
Its increased prominence will cause a spate of ETF filings. Solana’s Pyth data oracle will surpass the total value secured by Chainlink, whose LINK token may struggle to secure market share.
Read more: Solana vs. Ethereum: An Ultimate Comparison
VanEck thinks that the market capitalization of stablecoins, crypto assets pegged to fiat currencies, will increase to an all-time high. The rise will be driven by Europe’s Markets-in-Crypto-Assets bill and the increase in yield-bearing stablecoins.
Circle, whose USDC stablecoin suffered a decline in market share after the 2023 banking crisis, will see volumes return to pre-crisis levels.
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